Pultegroup, Inc. · NYSE:PHM

Pultegroup — Q1 2023 Earnings Presentation

20 slides from Pultegroup's earnings presentation, Apr 25, 2023

  1. Slide 1: Q1 2023 Operating and Financial Results

    Q1 2023 Operating and Financial Results April 25, 2023

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements As a cautionary note, except for the historical information contained herein, this presentation contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a number of risk

  3. Slide 3: PulteGroup Participants

    PulteGroup Participants Ryan Marshall President and CEO Bob O’Shaughnessy EVP and CFO Jim Ossowski SVP, Finance Jim Zeumer VP, Investor Relations ©2023 PulteGroup

  4. Slide 4: Q1 2023 Operating & Financial Highlights

    Q1 2023 Operating & Financial Highlights

  5. Slide 5: Q1 2023 Financial Highlights

    Home Sale Revenues ($M) Q1 2023 Financial Highlights $3,488 $3,032 • PulteGroup’s strong Q1 results get $2,188 $2,554 2023 off to a great start • Earnings increased 28% to a Q1 record $2.35 per share Q1 2020 Q1 2021 Q1 2022 Q1 2023 • Home sale revenues increased 15% to EPS (diluted) $3.5 billion – C

  6. Slide 6: Q1 2023 Financial Highlights: Gross Margin and SG&A

    Home Sales Gross Margin Q1 2023 Financial Highlights 29.3% 29.1% • Superior home sale gross margin of 25.9% 29.1% reflects relative pricing strength 24.1% in move-up and active adult businesses • Decrease in SG&A to 9.6% of home sale Q1 2020 Q1 2021 Q1 2022 Q1 2023 revenue helps drive a 100-basis po

  7. Slide 7: Q1 2023 Financial Highlights: Orders and Backlog

    Unit Backlog Q1 2023 Financial Highlights 18,966 19,935 • Q1 gross orders increased 1% over prior year to 8,898 homes 12,629 13,129 – Net new orders down 8% to 7,354 homes Q1 2020 Q1 2021 Q1 2022 Q1 2023 – Q1 cancelation rate as percentage of starting backlog was 13%, up from 4% last year Backlog Va

  8. Slide 8: Adapting to Market Changes: Land

    Adapting to Market Changes: Land Lots Under Control Owned Optioned • Actively managing land pipeline 122,326 130,302 116,827 102,264 102,827 – Lots under control down 10% from Q1 2022 – Company walked away from 5,300 optioned lots in Q1 and over 50,000 lots over the past 112,216 112,956 114,835 108,

  9. Slide 9: Adapting to Market Changes: Capital Allocation

    Adapting to Market Changes: Dividend & Share Repurchase ($M) Capital Allocation $1,219 • Repurchased 2.8 million shares in Q1 $1,045 for $150 million – Average purchase price was $54.30 $397 $301 • Benefited from strong Q1 cash flows as $186 Company ended the quarter with $1.3 2019 2020 2021 2022 Q1

  10. Slide 10: Q1 2023 Selected Financial Data

    Q1 2023 Selected Financial Data Three Months Ended March 31, 2023 2022 Change Home Sale Revenues ($ millions) $3,488 $3,032 15% Gross Margin Percentage 29.1% 29.3% -20 bps SG&A as Percent of Home Sale Revenues 9.6% 10.9% -130 bps Financial Services Pre-tax Income ($ millions) $14 $41 -66% Net Income

  11. Slide 11: Q1 2023 Selected Balance Sheet Data

    Q1 2023 Selected Balance Sheet Data March 31, 2023 December 31, 2022 Cash and Equivalents, including Restricted Cash ($ millions) $1,327 $1,095 House and Land Inventory ($ millions) $11,432 $11,326 Notes Payable ($ millions) $2,042 $2,046 Shareholders’ Equity ($ millions) $9,264 $8,914 Debt – to – C

  12. Slide 12: Company Profile

    Company Profile

  13. Slide 13: Nation's 3rd Largest Builder With a Broad and Balanced Geographic Footprint

    Nation’s 3rd Largest Builder With a Broad and Balanced Geographic Footprint SEATTLE BOSTON PORTLAND MINNEAPOLIS NEW HAVEN DETROIT PHILADELPHIA CLEVELAND CHICAGO SACRAMENTO COLUMBUS SAN FRANCISCO WASHINGTON D.C. INDIANAPOLIS SAN JOSE DENVER LOUISVILLE TRIAD RALEIGH LAS VEGAS CHARLOTTE NASHVILLE WILMI

  14. Slide 14: Industry Leading Brand Names

    Industry Leading Brand Names ©2023 PulteGroup 14

  15. Slide 15: Serving a Variety of Price Points

    Serving a Variety of Price Points 2022 Closings by Price Point 12% 5% 20% Under $300K $300K - $399K $400K - $499K $500K - $749K 37% $750K and Above 26% ©2023 PulteGroup 15

  16. Slide 16: Focused on Delivering High Returns Over the Housing Cycle

    Focused on Delivering High Returns Over the Housing Cycle • Drive superior homebuilding profitability – Disciplined underwriting process – Build to Order operating model – More efficient construction processes – Strategic pricing methodology – Importance of gross margin as a critical driver of retur

  17. Slide 17: Supplemental Financial Tables

    Supplemental Financial Tables

  18. Slide 18: Reclassification of Closing Cost Incentives

    Reclassification of Closing Cost Incentives The following table sets forth a reconciliation of the reclassification of closing costs incentives from home sale cost of revenues to home sale revenues for the current and prior year periods ($000's omitted): ©2023 PulteGroup 18

  19. Slide 19: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures This report contains information about our debt-to-capital ratios. These measures could be considered non-GAAP financial measures under the SEC's rules and should be considered in addition to, rather than as a substitute for, comparable GAAP financial me

  20. Slide 20: Slide 20

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